FOX - LION BITES OWNERS HAND

Although Sony was described as the leader of the consortium that bought Metro Goldwyn Mayer a year ago, the MGM board on Tuesday voted to end its agreement with Sony to distribute its DVDs and television shows and to sign a new worldwide distribution pact with 20th Century Fox. Sony, however, will continue to distribute MGM's films theatrically, including the upcoming James Bond movie, Casino Royale, scheduled for release in November. As a result of the board vote, Sony will lose $25-30 million a year in distribution fees, according to a Los Angeles Times estimate. In an interview with the newspaper, MGM CEO Harry Sloan downplayed reports of tensions between MGM and Sony, saying only: "There are always going to be challenges in a relationship of this manner. ... This has much more to do with MGM coming alive as a viable independent motion picture studio." In an interview with Bloomberg News, media analyst Paul Kagan commented, "It's an admission that Fox can do it better." Sony holds a 20-percent stake in MGM.